We are down to only one argument for the long side of the market and that is it is very over sold at this point. That is not much to go on.
If you are short side investor, the market is playing to your hand right now, particularly in the big caps. The mid and small caps along with some techs are hanging tough although sliding into neutral TradeWinds and heading into negative waters.
I am not much good at short investing as I have found you have to be pretty nimble. For example, financials may look to be fertile territory for a short investor, but they may have just been washed out an at a bottom, so I would stay away from that. The same goes for energy and the long side. I got to believe oil is about to correct, but one headline can change that.
All that said is that it probably a good time to just sit on the sidelines and watch, or do as I will probably do and sell some calls and make a little cash while I wait to see what the market is going to do this summer.
Check out our Top 25 lists and TradeWinds Black Box for some investing ideas on both the long and short side. Our Black Box was a perfect 5-0 last week for picking stocks that made a tradeable move.
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